Business Taxes Law Guide – Revision 2015

Sales and Use Tax Annotations

570.0000 USE OF PROPERTY IN STATE AND USE TAX GENERALLY

Annotation 570.0100

(a) IN GENERAL

570.0100"Deadheaded" to California—Effect. When a truck is purchased in Oregon by a common carrier in California, is consigned and delivered to a point outside this state, is deadheaded to California for the first payload, the use tax applies. Since the truck was brought to California to pick up its first payload, there is a taxable use in California in the absence of any explanation for the out-of-state delivery other than a device to escape tax without sufficient business purpose to justify it as a legitimate means of tax avoidance. 1/24/58.